Brooke Masters: New York law chief turns spotlight on dark pools

By Brooke Masters, on Wed Jul 2, 2014 at 1:30 PM ET

The US financial regulatory system can be described as a bowl of spaghetti. Multiple watchdogs with overlapping jurisdictions routinely tangle with each other over how best to keep markets safe and honest.

This week, Eric Schneiderman, the New York attorney-general, reminded investors why the US system of competitive regulation can sometimes work in their best interests. Mr Schneiderman fired a warning shot on Wednesday into the murky world of dark pools – trading venues where investors buy and sell large blocks of shares anonymously, with prices posted publicly only after deals are done.